Brits struggling with credit card debt can ask for three-month ‘breathing space’ – The Sun

HOUSEHOLDS who are struggling to honor their credit card payments due to financial issues related to the coronavirus may be offered up to three months of repayment vacation.

Most companies will currently give you at least 30 days of respite if you can show that you’re making an effort to pay off your debts, according to StepChange.

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    Some credit card providers will offer repayment holidays to troubled customers
Some credit card providers will offer repayment holidays to troubled customersCredit: Alamy

And from 2021, under the new government plans a 60-day respite period will see creditors’ enforcement actions suspended and interest frozen for people with debt problems.

During this period, individuals will receive professional debt advice to find a long-term solution to their financial difficulties.

But until then, some providers are offering credit card holders three-month payment holidays to help them get through the coronavirus crisis.

It comes as Chancellor Rishi Sunak once requested mortgage lenders will offer three-month payment holidays.

But consider all of your options before you request payment holiday, and get free debt advice from organizations like Advice to citizens and Stage change.

The UK’s three credit reference bureaus, Experian, Equifax and TransUnion, have confirmed to The Sun that payment holidays will show up on your credit report, but said they shouldn’t affect your score.

Here’s what the providers do:

Aqua

Aqua won’t tell us exactly how this will help borrowers.

But he said one option is a “short payment holiday” alongside the suspension of fees and the implementation of tailor-made reimbursement plans.

He adds that what is offered will depend on the customer.

Barclaycard

Barclaycard does not offer refund holidays to customers, but removed late payment and cash advance fees between March 19 and June 17.

You can also request a temporary increase in your credit card limit.

Barclaycard says you will still be able to make payments with your card if you take any of these steps.

Contact Barclaycard on 0800 046 8324.

A capital letter

Capital One says it has put in place a series of measures to help customers affected by the coronavirus, including a three-month payment holiday and the removal of late payment fees.

But he warns that it may prevent you from using your card if you take any of these steps – it depends on the person’s situation.

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Contact Capital One on 03444 812 812 for more information.

But keep in mind that he says his phone lines are busier than usual, so you may want to get in touch through his mobile app or website in place.

Lloyds and MBNA banking group

MBNA, alongside Lloyds Banking Group of which it is a part, will not offer payment holidays to customers.

But it removed the fees for missed payments on credit cards.

Plus, it can reduce interest payments and temporarily increase credit card limits.

The banking group says customers taking any of these steps will still be able to make payments on their cards.

You can call him on 03456 062 062, although he will once again warn that the lines are busy and you might be better off contacting him through his online services.

American Express

The Sun has asked American Express for its policies and we’ll update this story if we get a response.

Chancellor Rishi Sunak announces mortgage lenders to offer three-month break on bills to clients affected by coronavirus
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